Demand fuels property rise

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Two years after the first big earthquake, the Christchurch property market is showing little sign of slowing.

After a sustained period of high demand, values for homes in the city are now well past their previous peak, according to figures from state-owned valuation Quotable Value figures.

Figures from the Real Estate Institute this week also revealed that prices in the city were at record levels, driven by high demand and a shortage of homes listed for sale. The institute put the median price for homes selling in August at $371,600.

QV Valuer Daryl Taggart said demand was strongest for homes in the parts of Christchurch least affected by the earthquakes, and in areas that have been repaired. Homes are selling right across the city, however, keeping values up even in damaged suburbs.

Taggart said the most competition was in the $300,000 to $400,000 range. The state of the market was not great news for bargain hunters because of shorter listing times, multi-offers, and strong bidding.

"On the other hand, it's good for the vendors who are securing good prices on suitable terms."

He said there had been fewer sales in suburbs still waiting for repairs, and properties on technical category 3 (TC3)land had "not been selling well".

Homes in the Waimakariri and Selwyn districts are still in good demand, with values rising by 13.4 and 14.4 per cent respectively in the past year.

Taggart said townships in both districts were proving popular with home buyers as they were cheaper than Christchurch, had good amenities, and offered a lifestyle alternative.

QV calculated the annual increases in values across Christchurch were: east 5.9 per cent, hills 6.7 per cent, central and north 4.6 per cent, and south-west 7.8 per cent.

Real Estate Institute director Tony McPherson said the low number of listings was keeping the number of sales down but pushing prices up. The institute said median prices across the Canterbury-Westland region were: North Canterbury country $305,000, Central Canterbury $455,000, Mid-Canterbury $271,000, Timaru $246,000, South Canterbury country $200,000, and West Coast $260,000.